Reborn in America, I'm serious about making money.
Chapter 310 The First Signs of Crisis
Recently, Stephen Realty's frequent sale of a large number of its properties in remote areas has attracted widespread market attention. These properties are located in remote areas with inconvenient transportation and relatively weak infrastructure. However, Zhang San (the seller) has resolutely sold them off in large quantities, seemingly without any regrets.
After completing some basic patent layout, Zhang San is now selling off the rental properties he bought cheaply in the early stages. Now that North America has entered a period of interest rate hikes, if he doesn't sell these properties soon, it may cause more trouble.
Although these properties generate good returns each year, he is still selling them off.
As soon as the news broke, people began speculating about Zhang San's motives. Some believed he might have seen the fluctuations in the real estate market and wanted to sell in time to avoid potential risks; others guessed he might have other more attractive investment opportunities and needed funds to position himself.
Regardless of the reason, Zhang San's sale has undoubtedly impacted the local real estate market. The sudden entry of these remote properties into the market may lead to price declines, affecting other investors and homeowners. At the same time, it has also prompted a re-evaluation of the investment value of real estate in remote areas.
Stephen Realty has released a new announcement, simply to raise funds to invest in projects with higher returns. Although these projects are located in remote areas, these properties offer annual returns of up to 10%, making them a worthwhile investment.
That's good. Of course, Zhang San not only has thirteen high-end projects, but in his early years, he also bought a lot of properties in remote areas. After repairing, renovating and decorating these properties, they became good rental properties. Every year, they are rented to people with low incomes, but the return rate is very high. In less than five years, he has recovered 50% of the cost, and he also makes money in other aspects, including various expenses.
Many people are naturally interested when they hear about the 10% return, and he has already sold many properties in the area.
The main reason he wanted to sell these high-return neighborhoods was that the people living there were too diverse, and something happened every year. What kind of people could afford to rent there?
Zhang San's neighborhoods are like slums, concentrating a large number of impoverished people. They often face various problems such as poverty, crime, unemployment, and poor housing conditions.
However, his neighborhoods are different from slums. There are no dilapidated or dangerous houses. The streets are a bit narrow and the sanitation is slightly less than ideal, but there is no garbage. Moreover, they have complete infrastructure, water and electricity supply, and even schools and hospitals.
Why do hospitals exist? Of course, it's to make money and to help unmarried pregnant girls or women abort their babies.
Although the residents here live at a low standard of living, many are below the poverty line and face difficulties in finding employment and meager incomes.
However, they can receive subsidies and assistance, including donations from charitable organizations, but in the end, it all ends up in Zhang San's hands.
Although the crime rate here is often high and the social security situation is poor, the lives and property of residents are threatened.
But this place is a haven for many poor people; at least, if they don't go out at night, they won't be threatened with their lives or robbed.
Someone asked him why he was selling these properties that could provide sustainable income, whether it was because they were difficult to manage or because the place was too chaotic.
Zhang San's answer at the time was: "No, none of that. I just want to take advantage of the high housing prices to sell for a good price."
Zhang San noticed a series of unusual signs in the market.
With housing prices continuing to rise, people are taking out large loans to buy homes, creating a strong speculative atmosphere in the market. In pursuit of profits, banks and lending institutions have relaxed lending standards, extending loans to borrowers with poor credit histories.
Meanwhile, a complex financial derivatives market boomed, and subprime mortgages were packaged into bonds and sold to global investors. However, some borrowers began to default on their loans, and mortgage default rates gradually rose.
The real estate market showed signs of cooling, with rising house prices slowing or even beginning to fall. Financial markets began to fluctuate, and investor confidence in subprime-related assets wavered. These signs suggested that potential risks and instability were accumulating, setting the stage for the subprime crisis.
However, Zhang San naturally wouldn't say these things, but he was very honest and only said that he wanted to cash out and make a profit while housing prices were high.
That's quite honest. Besides, he's worried that the bank won't have the money. Otherwise, who could get a loan to buy a house or even the whole community?
Zhang San stood atop a tall building, overlooking the bustling city. Holding the property deed in his hand, he was filled with joy. He had just sold his house at a high price, obtaining a considerable sum of money.
At this moment, Zhang San, filled with excitement, prepared to invest this money in Hong Kong stock trading. He was full of enthusiasm for the Hong Kong stock market… Some things are just a matter of foresight; since he knew which stocks were profitable, why not take advantage of them?
He believed he could achieve greater success in this field full of opportunities, and he was serious about it.
In this turbulent era, the ups and downs of the stock market affect countless people. However, Zhang San's gaze has never turned to the stock market across the ocean. Although the stock market there shows no signs of rising, Zhang San seems to have no interest in it whatsoever.
He focused on his work and life, paying little attention to the ups and downs of the stock market. Perhaps it was because he lacked confidence in investing, or perhaps because he had more important things taking up his time and energy.
Meanwhile, the stock market across the ocean remained calm, with the index stagnating, and investors anxiously awaiting a turn of events. The ups and downs of the stock market are like the fluctuations of life; some profit, while others leave disappointed.
Zhang San chose not to participate. He preferred to focus his energy on areas where he was not subject to supervision, so as to avoid being accused of insider trading. On his path to wealth, he left everyone else in the dust.
Everyone has different views on investment and wealth. Zhang San chose to go to Hong Kong first and then return later.
Unbeknownst to Zhang San, Stephen Realty's actions also inspired some others to follow him to Asia. Naturally, they chose Hong Kong as their first stop, as it was more modern and one of the most prosperous cities in Asia. They were overjoyed to find that it offered greater freedom and easier investment opportunities.
"Wall Street is nothing special; this place is much more exciting."
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